(Yicai Global) Aug. 17 -- Shares of Douyu International Holdings sank after the Chinese video game streaming giant’s net loss widened 78 percent in the second quarter from the first quarter.

The stock [NASDAQ:DOYU] ended 11 percent lower in New York yesterday at USD3.07. Wuhan-based Douyu has lost as much as 82 percent of its value over the last six months.

Douyu’s net loss was CNY181.7 million (USD28 million) in the three months ended June 30, the Tencent Holdings-backed company said in an earnings report published yesterday. It had a first-quarter deficit of CNY101.8 million. Second-quarter revenue fell 6.8 percent to CNY2.34 billion (USD362 million) from CNY2.51 billion a year earlier.

Revenue from its live streaming business dipped 6 percent from a year earlier, mostly due a drop in user time as China recovered from the pandemic. Sales and marketing expenses more than doubled to CNY295 million, while revenue from advertising fell 15.7 percent from the same period last year. Investments in research and development rose almost 30 percent to 123 million.

Mobile monthly active users rose 3.9 percent to 60.7 million.

Internet titan Tencent’s plan to merge Douyu and Huya, another game live-streaming platform it backs, came unstuck on July 12 when China's State Administration for Market Regulation blocked the deal on the grounds that it would give Tencent too much sway over the sector. It was the first instance of its kind and a clear signal that regulators were stepping up a campaign against monopolistic corporate behavior.

“We believe that the anti-trust regulations are in line with the government's goal of promoting positive and fair competition in the internet industry,” Mao Mao, Douyu’s investor relations manager, said on an earnings call. “So we fully respect this regulatory decision.”

Mao also said Douyu does not expect the SAMR’s decision to have a material impact on its operational and financial performance.

Editor: Futura Costaglione